Crypto market shock! OM instant crash
Recently, the cryptocurrency market has experienced drastic changes.$OM The trend has left many investors stunned. Its price plummeted from the original 6.35 to 0.37 in a free fall, nearly a 20-fold terrifying drop, like a heavy bomb exploding in the market. Behind this crash, rumors abound; some say the forced liquidation operations by CEX were the ignition point, combined with concentrated sell-offs by large holders, which directly triggered panic selling in the market. The collapse of OM undoubtedly sounds a heavy alarm for all cryptocurrency investors, highlighting the enormous risks hidden behind altcoin investments.
Rfc steadily advancing, market value surpasses 100 million
While OM's crash has caused widespread sorrow, $Rfc stands out as a refreshing stream in the cryptocurrency circle, demonstrating a markedly different stable trend. It resembles a steady traveler, steadily rising, successfully stabilizing its market value above 100 million. The stable growth of Rfc is inseparable from its solid project fundamentals. Continuous investment in technical research and development has led to positive progress in expanding application scenarios, attracting more and more investor attention and favor, establishing a solid foundation for its steady market value rise.
Sun's Tron series, strongly rising
Sun's Tron series of tokens have also shown particularly impressive performance recently.$TRX Tokens like Sun, Jst, etc., are like a group of brave warriors, strongly rising in the market. The strength of this series of tokens is closely related to the continuous expansion and optimization of the Tron ecosystem. Tron continuously attracts new projects to settle in, and the prosperity of the ecosystem injects strong upward momentum into these tokens, while its active initiatives in market promotion and community building further enhance the market influence and investor recognition of this series of tokens.
Market turbulence, altcoins sound the alarm
In the early hours of Monday, the cryptocurrency market seemed to be hit by a sudden storm, leading to a collective crash of altcoins. Many altcoins fell by 90% or even 30%, and the entire market was instantly shrouded in panic. The originally thriving market atmosphere driven by Bitcoin and Ethereum was shattered by the crash of these altcoins. This phenomenon clearly indicates that the current market is far from hitting the bottom, and the high-risk characteristics of altcoins are fully exposed at this time. Investors must deeply recognize that in cryptocurrency investments, one should not blindly chase the high returns of altcoins but should remain rational and treat investment risks with caution.
BTC market in-depth analysis
Key support and resistance levels
BTC's current performance in the market is receiving much attention. Its key support levels are at 80751 and 79164, while resistance levels are at 85141 and 87467. The current price is oscillating within the 83315 - 85141 range, with intense competition between bulls and bears occurring within this range. Today's focus is on confirming the effectiveness of support in the 82033 - 83315 area; if the price falls back to this range during the day, it may trigger a rebound demand, providing new opportunities for bulls; while the resistance in the 85141 - 87467 area looms like an insurmountable mountain, becoming a key hurdle that BTC must break through to move higher.
Technical indicator interpretation
From the 4-hour chart, BTC's trend presents a complex situation. The current price is $84,847, up approximately +1.28% during the day, showing strong rebound momentum, having risen continuously from a previous low of around $76,000 and is now back near $85,000. A clear 'V-shaped reversal' pattern has formed, with strong rebound momentum, but is now approaching the previous dense transaction pressure area (around $85,000 - $87,000). Although bullish sentiment is strengthening, it has entered a critical testing area in the short term, needing to be cautious of a pullback.
Regarding the RSI indicator, the current RSI is 59.60, with the yellow line average at 60.36. The RSI is above the neutral line of 50, indicating that bulls still hold the advantage. However, if the RSI breaks 70, it will enter the overbought zone, at which point one must be highly vigilant against the risk of a short-term adjustment. Currently, there are no signs of RSI divergence or overbought conditions, indicating that the upward momentum of prices can still continue.
In terms of price-volume relationship, transaction volume is gradually expanding alongside the rise, clearly indicating that buying power is continuously strengthening during the rebound process. However, it is important to note that if the price oscillates around 85K in the future while transaction volume declines, one needs to be cautious of false breakouts. Only a breakout above 87,000 with significant volume can confirm the arrival of a medium-term reversal trend.
Overall, BTC's short-term strong rebound is testing key resistance zones. For bullish holders, they can continue to hold and closely monitor the breakout situation in the 85,000 - 87,000 range; for aggressive short-term buyers, it is recommended to wait for a price pullback to the 82,500 - 83,000 area before considering entry; for bearish defenders, if the price fails to effectively break above 87,000, a pullback correction trend may occur. The key observation points are whether the RSI can continue to rise and break 70, whether the trading volume can continue to increase along with the breakout, and whether the price can stabilize above 85,000. In summary, Bitcoin has currently returned to a strong area but is nearing a key pressure zone; if it breaks through forcefully with volume, it is likely to challenge $90,000; otherwise, there may be high-level oscillations or even technical corrections. Investors must manage their positions well and follow the trend.
Tracking the market trends of ETH and SOL
ETH's bullish and bearish battles
ETH's market trends also capture investors' attention. Its support levels are 1555, 1500, and 1450, while the resistance level is tentatively set at 1753. Throughout the day, ETH uses the support level as a key point to seek opportunities; if the support level holds, there is still demand for a pullback at the resistance level. However, this morning's panic triggered by altcoins has created significant selling pressure in the market, and whether ETH can pull back to 1753 depends on various factors. These include how long it takes for the selling pressure to be fully digested by the market, whether there will be new selling pressure released, and whether the existing selling pressure is sufficient to cause ETH to break downwards. These factors will significantly impact ETH's subsequent trend.
SOL's following strategy
SOL is currently consolidating around the key support and resistance level of 133. It behaves like a cautious follower, waiting for the clear direction of Bitcoin (BTC), with its movement closely following BTC's trend. Once BTC's trend becomes clear, SOL is likely to follow in that direction, so investors need to closely align their observations of SOL with BTC's market changes to formulate reasonable investment strategies.
Investment warnings and strategy summary
In the current complex and volatile cryptocurrency market environment, investors must maintain a high level of rationality and caution. The investment risks of altcoins have been fully exposed in recent market fluctuations, and one should not be blindly lured by short-term high returns. Investment focus should be shifted more towards stable mainstream tokens like BTC, ETH, and SOL, rationally allocating assets and effectively controlling investment risks.
Market analysis
Change in short position layout strategy
In the assessment of the overall market trend, the previous layout of short positions was based on the 85 - 86 range, initially planning to establish large-scale short positions. However, after the evolution of the market, it appears that this approach has certain limitations. A more reasonable strategy now is to conduct small-scale short operations, and in some cases, not shorting may be a wiser choice. The market is complex and volatile, and investors' strategies need to be flexibly adjusted in response to market dynamics.
Upward structure and volume analysis
The upward trend from the bottom has various possible structures. It could either be the C wave of an ABC correction or a simple three-wave upward move, or even a more complex five-wave upward move. Regardless of the situation, the current position faces a key issue — the volume on the 4-hour chart is facing exhaustion. Unless favorable news stimulates the market, creating a strong bullish breakout, the rational investment strategy should be to wait for the market to fully digest the 4-hour indicators before seeking the right opportunity to enter for further long positions. This approach better aligns with market trends and reduces investment risks.
Small-scale adjustments and long position operations
A detailed observation of the overall market trend from a smaller perspective reveals that the current adjustment phase is crucial. Regardless of whether the price can subsequently break through previous highs, as long as the trend shows weak characteristics, it is a good time for investors holding long positions to temporarily close their positions. One can regard 86 as an important resistance level; if the price successfully breaks this resistance, one should not rush to chase but wait for the price to retest and confirm effective support before entering. This approach effectively avoids blindly following market fluctuations, enhancing the accuracy and safety of investment decisions.
About altcoins
Insights and opportunities in altcoin trends
Recently, social media has reminded investors to closely monitor the potential dead cat bounce in altcoins. In discussions with friends, it was also mentioned that newly launched coins are worthy of special attention. This is because the altcoin market has basically completed a large-scale reshuffle, akin to the natural metabolism, where old altcoins gradually wither, and these withering old altcoins transform into nutrients, providing the soil for the emergence of new entities.
Comparison analysis of popular altcoins
Taking two recently popular altcoins, OM and $PROMPT, as examples for comparison. After yesterday's crash, OM, despite suffering heavy losses, still has a market value of 6.5 billion; while $PROMPT has performed exceptionally well since its launch on #OKX, rallying for three consecutive days, with early investors already reaping 2-3 times substantial profits, yet its current market value is still under 10 million. In terms of project attributes, OM belongs to the classic project category, closely related to DAO, Polkadot, etc.; whereas $PROMPT follows current trends, focusing on the AI agency track. The differing performances of these two coins vividly showcase the diversity and variability of the cryptocurrency market.
Interpretation of the self-correction mechanism in the cryptocurrency market
This is a vivid interpretation of the self-correction mechanism within the cryptocurrency market. This round of market correction began with the anti-VC wave, transitioned through the super MEME cycle, and is currently in a new incubation phase. After this round of deep cleansing, market rules are undergoing profound changes. Projects that previously peaked upon listing and immediately distributed may likely face a fate of death upon listing in the future. Market opportunities will be more available for low market cap projects like $PROMPT that can provide ample growth space for the secondary market. This means that investors need to closely follow market changes when selecting altcoin investments, shift their investment mindset, and pay attention to emerging projects with growth potential.
Key points for investing in the secondary altcoin market
The current secondary altcoin market is at a brand new starting point, which can be seen as the beginning of a treasure-hunting process on a monthly and annual cycle. In this market full of opportunities and challenges, investors need to focus on the following key points: first, the transformation of old projects; those that can bloom again and successfully realize business transformation and upgrades may encounter new development opportunities; second, new projects, especially those in popular tracks that have not yet been disproven, often have greater development potential; third, projects must maintain a low market cap upon listing to provide sufficient growth space for subsequent development. Only by grasping these key points can investors possibly find truly valuable projects in the treasure-hunting journey of the secondary altcoin market and achieve asset appreciation.
